#MarketTurbulence

🌪 #MarketTurbulence : why are the markets so volatile?

Since the beginning of the year, the markets have been experiencing significant turbulence. Several current events are contributing to this instability:

1. Inflation and surprise PPI in the United States

On August 14, the Producer Price Index (PPI) surged to 3.7% year-on-year, a level not seen in three years. This unexpected rise has dampened expectations for an imminent rate cut in September.

2. Concerns about U.S. equities

Goldman Sachs warns: the probability of a correction is now greater than 10% over three months, and over 20% over one year. High valuations and a less favorable economic cycle explain this pessimism. These analysts recommend a cautious tactical allocation, particularly towards cash or derivative strategies.

3. Crypto sensitive to macro indicators

The cryptocurrency market has seen a sharp decline: more than one billion dollars in liquidations were triggered following the rise in PPI. Bitcoin briefly fell below $112,000, while Ethereum ETFs attracted significant inflows despite the volatility. Furthermore, Bitcoin lost 5% on August 14, resulting in $860 million in losses.

4. Resilient business models, key to outperformance

In the face of geopolitical uncertainty, supply chain disruptions, and technological upheavals, the most sustainable companies are those that thrive in adversity.

** In summary:** rampant inflation, tight valuations, crypto sensitivity, and global tensions make up this explosive cocktail of volatility. It remains to be seen how investors and companies will navigate these unpredictable waters...